Which of the following does the pecking order hypothesis predict?  
a. Companies prefer internal financing first.
b. If external financing is required, companies must first seek debt financing. 
c. If external financing is required, companies will choose to issue the safest or cheapest security first, starting with debt financing and using equity as a last resort.
d. All are correct

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is c If external fin... View the full answer